Premier Provides Year-End Operations Update
Elemental Royalties Limited, (“Elemental”), a private company expanding a diversified portfolio of mineral royalties, is pleased to comment on the year-end operations results announced by Premier Gold Mines Limited (“Premier”). Premier is the operator of the Mercedes gold-silver mine located in State of Sonora in northern Mexico, on which Elemental Royalties holds a 1% NSR royalty subject to a production hurdle.
During 2019 Premier has worked on several initiatives at Mercedes to provide an improved profile in 2020 and beyond with a successful drill campaign resulting in the discovery of higher-grade zones located near existing mine workings.
Operational improvement has identified near-mine, accessible ore in both the Lupita extension and at Marianas. Premier expects that by increasing the available ore headings and stopes it will provide greater flexibility and increased production. Work continues to reduce dilution through the modification of mining equipment to decrease the size of development headings where appropriate.
2019 has seen the most significant exploration successes since Premier acquired the mine in 2016. The discovery of the Lupita Extension, San Martin and Neo mineralized horizons are expected to positively impact not only future resources, and therefore mine life, but also the grade as drilling in 2019 is delivering results well in excess of current reserve grade at the mine.
Premier recently bolstered its team with the addition of Peter Van Alphen as Chief Operating Officer, who has implemented several strategies to improve upcoming performance at Mercedes. However, 2019 has been a difficult year with lower than expected production and higher than expected costs. At the end of Q3, year-to-date mine production totalled 47,627 ounces of gold and 146,496 ounces of silver with total Co-product cash costs of $973/oz Au and Co-product All-in sustaining costs of $1,226/oz Au.
As a result, Premier will not achieve its production or cost guidance at Mercedes for the year but does expect substantial improvements in 2020 and beyond.
The text above is Elemental Royalties’ comment to the operator’s news release and is not included within the original release. The original article is available using the links below.
|Original Article: https://www.premiergoldmines.com/year-end-operations-update|
|Download PDF: https://www.premiergoldmines.com/upload/documents/press-releases/2019/dec-18-operations-update-pr.pdf|
About Elemental Royalties Limited
Elemental is a private company providing investors with exposure to a dividend-paying royalty company building a diverse portfolio of mining royalties, benefiting from ongoing royalty revenue, future exploration upside and low operating costs.
Since early 2017 Elemental has assembled a portfolio of five royalties over seven commodities in four countries, four of which cover producing mines. Immediate cash-flow has enabled the Company to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend from inception.
Elemental’s focus remains on securing royalties over advanced assets with established operators and credible counter-parties from a robust pipeline of potential royalty acquisitions across commodities and geographies.
For further information you are invited to visit the Company’s website www.elementalroyalties.com or contact:
|Elemental Royalties Limited|
|Frederick Bell: Managing Director||T: +44 (0) 203 434 633|
|M: +44 (0)755 487 2794|
|Greg Owen: Corporate Development Manager||T: +44 (0) 203 434 633|
|M: +44 (0)7887 554 316|
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